> For the complete documentation index, see [llms.txt](https://docs.tread.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tread.fi/creating-and-submitting-orders/advanced-settings/trajectories/vwap.md).

# VWAP

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXewzBll5bzWDPpWvY2JGGzfWsmcztUG-6Q5MrHgfc6x70c8iy4VGuwdqTdcaW4ct6Y17aF3QVwnldCr_WhQlwdAD5CfQBxElzFwbTqSK2CXmemX0NVnvbp7R6GvZ58AcEUrlBMCzw?key=2WiiUTnIpT80_43pMWB-IUW2" alt=""><figcaption><p>Example of VWAP Trajectory</p></figcaption></figure>

The **VWAP trajectory** aims to **match the market’s volume-weighted average price** over the order duration. It dynamically **adjusts execution based on market volume**, ensuring **steady participation while minimizing market impact**.

#### **How It Works**

* The engine **monitors real-time market volume** and adjusts order execution accordingly.
* Trades are executed **more aggressively during high-volume periods** and **more passively during low-volume periods**.
* This **dynamic adjustment** helps maintain **steady market participation** while reducing **price disruption**.

#### **When to Use VWAP**

* **For gradual execution** of orders over an extended period.
* **To minimize market impact** by distributing execution across **liquid trading periods**.
* **Best suited for liquid, predictable markets** with stable trading activity.
* **For volume-based execution** that dynamically adjusts to market conditions.

#### **VWAP Limitations**

* **Delayed execution in low-volume periods** may lead to **alpha decay**.
* **Limited response to sudden liquidity events**, as VWAP **relies on historical volume patterns** rather than real-time market shifts.

This trajectory is ideal for traders who **want to execute large orders discreetly** while maintaining **a strong correlation with overall market activity**.